Financial tips to guide you if you’re feeling the summer ‘social squeeze’
Michelle, a student of mine, keeps a separate savings account dedicated to summer fun. As a travel adventurer, hiker, biker, kayaker, swimmer, lover of people and the planet and fully remote worker, her biggest expenses happen between May and October. During her side season (November to April), she packs her high-interest, no-fee savings account with every spare penny, and formulates plans for the upcoming summer season. She also sublets her city loft while she travels each summer, to offset the carrying costs of her mortgage and condo fees.
Your version of summer fun is probably different from Michelle’s, but these three money-maximization themes apply to pretty much everyone and every summer-spending scenario.
Make your ‘stop’ list
The best way to achieve maximum summer fun is to give yourself sufficient time to really enjoy the here and now (avoid overscheduling yourself) and to steer clear of unnecessary debt (nothing takes the sizzle out of summer like being hit with a massive credit card bill you can’t afford to pay).
Make a list (or a set of voice notes on your phone) of what’s most important to you and your family (if applicable). What makes the cut? Dating? Travelling? Patios? New-to-you bikes? Fancy outdoor dining? Music festivals? Garden improvements? Home renos? Saving for something even bigger?
There’s a ton of social spending pressure as things heat up, but saying “no, it’s not part of my priorities (a.k.a. budget) this summer” gets so much easier to say once you’re crystal clear on what you do want to spend money on.
I often coach my students to make a “stop” list at the same time. These are things you’re going to stop or pause for the summer to create space in your budget for all the summer sizzle you’re planning. Many pause streaming services, gym memberships, spray tans, prepared meals and anything deemed “winter-ish.”
Price it out
For many, spending in the summertime rivals major holidays like Christmas. So it’s important to know exactly what’s going to play out for you financially the next few months.
I suggest taking your list (and probably your calendar), and quite literally placing a dollar amount beside every item. If your top priority is dating, you may need to earmark a weekly amount toward this priority; say $50 to $100 a week ... cross your fingers you fall for someone who’s also being money conscious. If it’s weekends away, price out key aspects of the trips and tally it all up.
Next, make a custom budget for the whole summer. You may want to map out every single week or do it by month. Note all sources of income, regular expenses and the unique summertime costs. If you’re dipping into your savings account to pay for all this summer fun, include those funds as a source of income. If you plan to purge and sell things in your home to help pay for the upcoming costs, mark down your best estimates of what they’re worth as income. I’ve recently sold a chair, phone and sleep-training clock using Kijiji and Facebook Marketplace.
If you happen to have the flexibility in your budget to continue saving each pay day, do it. Automating the contributions is a sync in your online banking portal so you can set it up and forget about it. Having savings to pay for your summer sizzle and fun will feel great and hopefully keep you out of debt.
Use rewards
If travel points are something you collect, use them up for flights, hotels, gas and whatever gives you the greatest value. If you’re sitting on a waxing or nail salon credit, use them. If gift cards or loyalty points are collecting dust in your drawers, cash them in, maybe for BBQ items, spa days, sunscreen and whatever else you need. Apply coupons and look for sales everywhere and on everything.
As an example, I have a two- and four-year-old, so my summer is full of family activities. I bought a zoo membership last week that had plenty of first-time member perks, making it such that I only have to go three times to have it pay for itself. I also pack our lunches to avoid expensive convenience food while we’re there.
If money is tight, free summer fun is where it’s at. Google to find free festivals, concerts, activities and events. Explore the perks you already have but might not know about, with your library card, credit card, memberships you belong to, etc. Enjoy the outdoors; walking, running, biking, hiking, swimming, kayaking and yoga in the park. You may have some small startup costs like running shoes and a yoga mat, or maybe rental fees for a paddle board or bike, but you can build this into your budget under the entertainment category and look for coupons or bulk deals. DIY what you can, and have fun enjoying homemade meals and low-key social activities.
The financial pressure of participating in social events can leave many feeling overwhelmed — a phenomenon called the “social squeeze.” But with a solid summer spending plan in place, you can fill your soul, soak up the sun and enjoy every minute of this beautiful summer without worrying about going broke.
This article was originally published in The Star. Lesley-Anne Scorgie is a Toronto-based personal finance columnist and a freelance contributing columnist for the Star.
